In a transfer aimed toward China, the finance ministry had in July final yr mentioned that bids for presidency tenders coming from international locations sharing a land border with India must be cleared by a government-constituted panel.
The division of expenditure had amended the General Financial Rules, 2017, within the curiosity of nationwide safety at a time when geo-political tensions had been escalating with India’s largest neighbour.
“Department of Expenditure may, by order in writing, impose restrictions, including prior registration and/or screening, on procurement from bidders from a country or countries, or a class of countries, on grounds of defence of India, or matters directly or indirectly related thereto including national security,” the July order mentioned.
However, as a result of Covid-19 pandemic and contemplating that the majority key parts within the manufacture of medicines come from China, the federal government had exempted the procurement of medical supplies instantly associated to the containment of the pandemic from the provisions of the order until December 31, 2020.
As per the amended guidelines the division for promotion of trade and inner commerce would arrange a committee to vet all functions from such international locations and solely these bidders with a compliance certificates would be capable to take part in public tenders.
At the time, specialists had expressed considerations concerning the influence on initiatives and manufacturing in sectors which are closely depending on the import of Chinese supplies equivalent to renewable vitality, electronics, highways and railways.